AIG Strengthens Loss Reserves in Its Non-Life Business by $3.6
Billion Pre-Tax, Representing Six Percent of AIG’s Total Non-Life Net
Reserves

January 26, 2016 07:00 AM Eastern Daylight Time

NEW YORK--(EON: Enhanced Online News)--American International Group, Inc. (AIG) announced today that it has
completed its fourth quarter Non-Life loss reserve analyses and has
strengthened reserves by $3.6 billion pre-tax in the fourth quarter of
2015. Accident years 2004 and prior represent $1.3 billion. The
remaining $2.3 billion results in an increase just under 0.7 points on
average for the 2005 through 2014 accident year loss ratios.

Each quarter, AIG conducts a series of actuarial reviews to reassess the
reasonableness of its carried reserves. These reviews are conducted for
each class of business, and consist of hundreds of individual analyses.
AIG considers data and information arising since the prior review and
adjusts, as appropriate, the methods and assumptions used in the latest
actuarial reviews.

This strengthening of loss reserves primarily reflects adverse
development on prior accident years in long-tail classes of business.
Three classes comprise approximately 90% of the total charge; U.S. &
Canada casualty ($2.2B), U.S. & Canada financial lines ($0.6B), and
runoff lines ($0.5B).

AIG has contributed capital to maintain statutory surplus within target
levels of financial strength for the non-life insurance subsidiaries.

This press release contains “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements are not historical facts but instead
represent only AIG’s belief regarding future events, many of which, by
their nature, are inherently uncertain and outside AIG’s control. Except
for AIG’s ongoing obligation to disclose material information as
required by federal securities laws, AIG is not under any obligation
(and expressly disclaims any obligation) to update or alter any
forward-looking statements, whether written or oral, that may be made
from time to time, whether as a result of new information, future events
or otherwise. Factors that could cause AIG’s actual results to differ,
possibly materially, from any forward-looking statements include
completion of the year end audit process and the factors set forth in
AIG’s filings with the United States Securities and Exchange Commission.

American International Group, Inc. (AIG) is a leading global insurance
organization serving customers in more than 100 countries and
jurisdictions. AIG companies serve commercial, institutional, and
individual customers through one of the most extensive worldwide
property-casualty networks of any insurer. In addition, AIG companies
are leading providers of life insurance and retirement services in the
United States. AIG common stock is listed on the New York Stock Exchange
and the Tokyo Stock Exchange.

AIG is the marketing name for the worldwide property-casualty, life and
retirement, and general insurance operations of American International
Group, Inc. For additional information, please visit our website at www.aig.com.
All products and services are written or provided by subsidiaries or
affiliates of American International Group, Inc. Products or services
may not be available in all countries, and coverage is subject to actual
policy language. Non-insurance products and services may be provided by
independent third parties. Certain property-casualty coverages may be
provided by a surplus lines insurer. Surplus lines insurers do not
generally participate in state guaranty funds, and insureds are
therefore not protected by such funds.

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